It's very confusing. Though I don't think they've done enough to help the team for this year, especially given the space they have under the tax, other signs point to the fact that they do think they can contend. They traded for O'Neill, who will be a FA at the end of the year, and signed Giolito with an option for him to also become a FA. Martin, Pivetta, and Jansen all are pending FA with some trade value (esp. if they eat some $ in the case of Jansen). Possible explanations:
-There is a mandate to not have payroll much higher than it is now.
-There is a massive reluctance to take on deals beyond two years, so much so that even the 3rd year option on Stroman was a bridge too far. The Imanaga offer (two years with vesting options) and apparent unwillingness to go beyond that points in this direction.
-Of the guys who signed two year deals (Maeda, Wacha, etc.), they simply don't see those guys as upgrades from the Houck/Whitlock crew that is lined up to compete for the 5th starting job. Or from this year's Kluber who ends up signing a one year deal.
-Plan B after Yamamoto all along has been Jordan Montgomery, and they are playing a long game of chicken to get the terms they want.